The new policies, described as both “humane” and “groundbreaking,” include broad tax exemptions, reduced rates and administrative simplifications designed to ensure taxpayers’ rights and improve business conditions across the country.
One of the most significant changes is the complete exemption of the business license fee from January 1, 2026, eliminating both the cost and related administrative procedures for all taxpayers.
Personal income tax (PIT) rules have also been substantially revised. Business households with annual revenue of up to 500 million VND (about $19,600) are now exempt from PIT, compared with the previous threshold of 100 million VND (about $3,900). For those earning above 500 million VND, the first 500 million VND is now deductible before tax calculation.
According to the Provincial Tax Department, raising the tax-exempt threshold fivefold is expected to benefit the majority of business households, easing financial pressure and encouraging expansion.
For small business owners like Nguyễn Thị Thu Ngân, who runs a grocery shop from a rented apartment, the changes offer immediate relief. Previously required to pay multiple taxes annually, she will now be exempt under the new regulations. She said the policy would help reduce financial strain and provide motivation to improve her family’s living conditions.
Corporate income tax has also been adjusted to support private sector development. Instead of a flat 20% rate, small and micro-enterprises will now be taxed at reduced rates of 15-17%, depending on factors such as workforce size, capital and revenue.
In the energy sector, authorities have introduced temporary but unprecedented measures. From March 26 to April 15, 2026, environmental protection tax on gasoline, diesel and jet fuel is set at 0 VND per liter, while the special consumption tax on gasoline is reduced to 0%. These fuels are also exempt from VAT declaration and payment, though input VAT remains deductible.
Officials say the move is intended to stabilize fuel prices, ensure energy security and support both businesses and consumers during a critical period.
Additionally, the government continues to apply a reduction in value-added tax (VAT) from 10% to 8% for various goods and services, alongside maintaining tax refund mechanisms to stimulate consumption and economic activity.
To ensure effective rollout, tax authorities have intensified communication efforts, providing guidance through handbooks, online platforms and direct consultations. Both in-person and virtual dialogues are being organized to help taxpayers understand eligibility, procedures and compliance requirements.
Business owners have reported improved clarity and compliance as a result. Nguyễn Thị Tô, who runs a paint and food business, said official guidance helped her correctly apply tax deductions, declare goods and issue invoices, avoiding violations.
At the same time, the tax department is accelerating electronic processing of tax refunds. Between January 1 and March 12, authorities resolved 79 refund applications worth 521 billion VND (about $20.4 million), with no overdue cases.
Officials emphasized that the short implementation window requires timely execution to ensure beneficiaries receive full support, pledging continued assistance to maximize the effectiveness of the new policies.